Internet execs' pay drains the kitty - Study finds that, post dot-com heyday, Internet companies are redefining executive compensation strategies to retain CxOs and drive bottom line performance.(Industry Trend or Event)

MORE EVIDENCE THAT cash is king among Internet execs can be found in the Securities Exchange Commission filings of public Internet companies, according to "The Internet Compensation Survey: 2001," a study recently released by Unifi Network, a subsidiary of PricewaterhouseCoopers in Westport, Conn.

The report shows that in 2000 public Internet companies rewarded top executives with aggressive cash and equity compensation packages to make up for underwater options and to keep top brass on board.

According to the study, 71 percent of executives represented in the study received an increase in total cash compensation -- base and bonus -- during the previous year. This increase, despite the economic downturn, was primarily a result of higher bonus payout, the report writers say.

A matter of record

The Unifi Network study reflects 2000 compensation levels and ownership data gathered from annual shareholder proxy statements and/or annual reports of 98 Internet companies filed prior to April 2, 2001. Among the companies included in the study are Ameritrade, Ariba, Autoweb, eBay, Hoovers, Priceline.com, and Yahoo. According to Unifi, 68 percent of the represented companies have a market capitalization between $10 million and $999.9 million.

The number of public Internet companies represented in this year's study fell from 123 last year. According to the report, the decline in the number of companies surveyed resulted from numerous business failures and mergers-and-acquisition activity. For the companies surveyed for the 2001 report, market capitalization for more than 90 percent of them had decreased by an average of 80 percent.

Bonus increase